How can I deduct special expenses such as insurance premiums?
March 7, 2022 | 30,00 EUR | answered by Anneliese Schaaf
Dear tax advisor,
My name is Günther Kraft and I have a question regarding my tax return. I am unsure how to deduct special expenses such as insurance premiums in my tax return.
For background information: I am an employee and in the past year I have paid various insurance premiums, including for my health insurance, liability insurance, and disability insurance. These expenses account for a significant part of my monthly costs, and I am wondering if I can deduct them for tax purposes.
Currently, I have never included special expenses in my tax return and may have potentially missed out on money. That naturally bothers me, and that is why I would like to know how I can do better in the future.
My concern is that I do not know which insurance premiums are exactly deductible and how to correctly report them in my tax return. I do not want to make any mistakes and would therefore like to hear from you about the options available for deducting special expenses such as insurance premiums.
Can you please explain to me what requirements need to be met in order for me to report insurance premiums in my tax return? Are there specific maximum limits that I need to consider? And how do I accurately input the premiums in my tax return to ensure that they are taken into account?
Thank you in advance for your assistance and I look forward to your response.
Sincerely,
Günther Kraft
Dear Mr. Kraft,
Thank you for your question regarding the deductibility of insurance premiums in your tax return. It is understandable that you are unsure about how to correctly report these special expenses in order to obtain tax benefits.
In principle, insurance premiums can be claimed as special expenses in your tax return, provided they meet certain requirements. This includes, among others, health insurance premiums, liability insurance premiums, and disability insurance premiums, as you mentioned.
In order to deduct these insurance premiums for tax purposes, they must be allocated to what is called the "Vorsorgeaufwand" (provision for the future). The provision for the future includes not only the mentioned insurance premiums but also contributions to retirement savings, accident insurance, and other provision products. The maximum limits for deductible provision for the future are €1,900 for singles and €3,800 for married couples.
To correctly report the insurance premiums in your tax return, you must enter them in the "Anlage Vorsorgeaufwand" (provision for the future attachment). There, you can indicate the individual contributions in the corresponding lines. Make sure to collect all contribution certificates from your insurances and transfer the amounts correctly.
It is important to keep all relevant documents carefully and attach them to your tax return if necessary. Only then can you ensure that your information is correct and provide evidence in case of an audit by the tax office.
I hope that this information was helpful to you. If you have any further questions or need assistance with preparing your tax return, I am happy to help.
Best regards,
Anneliese Schaaf
